Question

1. Jerome is considering investing $10,000 in a security that has the following distribution of possible...

1. Jerome is considering investing $10,000 in a security that has the following distribution of
possible one-year returns:
Probability of
Occurrence 0.10 0.20 0.30 0.30 0.10
Possible
Return -10% 0% 10% 20% 30%
a) What is the expected return in % associated with the investment?
b) Calculate the expected return in DOLLAR AMOUNT for the investment.
c) What is the standard deviation associated with the investment?

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